Oil prices edged lower on Wednesday, reversing earlier gains, as further disruptions to Venezuela's crude exports were offset by a report that U.S. inventories rose last week. In the short term, prices were pressured by a report from the American Petroleum Institute, a trade organization, saying U.S. crude inventories rose 1.9 million barrels last week, while analysts had forecast a 1.2 million barrel drop. Click Read More below for additional detail.
Futures were little changed in New York after rising 2.6 percent Friday. Oil inventories are unlikely to drain to average levels by the time the OPEC agreement expires at the end of March, Saudi Arabia’s Khalid Al-Falih said Thursday. The U.S. drill-rig count was unchanged at 738 at the end of last week, data from Baker Hughes showed.
Oil dipped slightly last week on a weaker demand outlook while Russia cast doubts on the timing of a decision to extend supply cuts led by the Organization of Petroleum Exporting Countries. Wagers on lower Brent prices rose by the most since June through the week to Nov. 14 amid uncertainty over Saudi Arabia’s push to prolong output curbs. Yet an extension remains likely, according to PVM Oil Associates Ltd.
“It is widely believed that OPEC, together with 10 non-OPEC countries, will roll over their production for the whole of 2018,” said Tamas Varga, an analyst at PVM in London.
more at: https://www.bloomberg.com/news/articles/2017-11-19/oil-holds-gain-above-56-after-surge-on-saudi-cut-extension-plea